Calculate the price elasticity of demand for small drinks. (Show your work) Is the price elasticity of demand for small drinks price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below Calculate the price elasticity of demand for small popcorn. (Show your work) Is the price elasticity of demand for small popcorn price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below
The manager at Ruby Red Movie Theater decided to change the prices of concession stand items as well as tickets this month in an effort to increase revenues. Below, you are provided with prices for last month and this month as well as the quantities demanded for both months. Use this information when answering questions A-H, below.
Price |
Quantity Demanded |
|||||||
Item |
Last Month |
This Month |
Last Month |
This Month |
||||
Large Drink |
$6.00 |
$5.50 |
150 |
161 |
||||
Large Popcorn |
$7.50 |
$8.00 |
125 |
101 |
||||
Small Drink |
$2.50 |
$2.00 |
75 |
80 |
||||
Small Popcorn |
$5.00 |
$5.25 |
45 |
39 |
||||
Candy |
$4.00 |
$3.50 |
57 |
68 |
||||
Hot Dog |
$5.00 |
$5.25 |
35 |
36 |
||||
Movie Tickets |
$8.00 |
$9.00 |
428 |
300 |
- Calculate the price
elasticity of demand for small drinks. (Show your work) - Is the price elasticity of demand for small drinks price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below
- Calculate the price elasticity of demand for small popcorn. (Show your work)
-
Is the price elasticity of demand for small popcorn price elastic, inelastic, or unit (unitary)? Briefly explain why in the box below.
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